Wednesday, August 12, 2009

Slow trading today… market ran really hard off the open, but then almost stagnant. Some good trading opportunities, but must be nimble.

  • The “Trading RM" oscillator is still on the downtrend line, fell off a little yesterday, continued off today. Unless something dramatic happens tomorrow, looking for the more of the same. Trading RM believes being patient is appropriate.
  • “Future(s)” flat like Trading RM expected last night, however, the up move was market showing it’s domination and control of where the trading happens. Market popped hard immediately, but met resistance. Futures traders again maybe getting tired of trying to suggest a down move, overnight and pre-market traders could get with market going up.
  • “Range” was intra-day was more than the recent moving average with about 20 handles today and including overnight futures it was a little more. Market couldn’t make new highs today, but did close up despite the selling in the last 20 minutes. Until the market breaks the present trading range, 990 to 1012/1016, looking for more chop.
  • “Going Big” was almost 2:1 weighted with upside percentage when compared to downside which Trading RM did not expect given recent history. This suggests market more continuation to the upside is possible.
  • “Gap DaP” went straight up, which Trading RM hasn’t seen for awhile. While there were a couple downside plays, most of the action was upside in the AM. Recent history shows a gap up is likely, followed by a test of key levels.

Today had selective trading opportunities; money is there for the taking, be ready for the aggressive days, they will come.

Good luck and Great Trading.